Iron ore futures fell to around CNY 703.5 per tonne on Tuesday, pulling back from a two-week high amid signs of improving supply from Australia, the world’s top exporter. Rio Tinto, the world’s largest iron ore producer, announced a joint venture with Hancock Prospecting to develop the Hope Downs 2 project in Western Australia.
According to Rio, the project’s two iron ore pits will have a combined annual production capacity of 31 million metric tons. On the demand side, hot metal production in China—a key indicator of iron ore consumption—rose to 2.422 million tons over the past week, according to industry data. Output has remained stable around 2.4 million tons since April, reflecting continued strength in the world’s largest steel market.
